The Abbeville press and banner. [volume] (Abbeville, S.C.) 1869-1924, 1887-09-21
A GREAT RAILROAD DEAL.
A Syndicate in Control of the Balti-
more and Ohio Road.

A Syndicate in Control of the Balti-
more and Ohio Road.
The announcement that powerful syndi-
cate of bankers has obtained control of the
Baltimore AMI Ohio Railroad makes public
the most important railroad IDEAL" that has
been consummatei in many years, and lifts
the financial cloud which has rested upon the
stock market for some months BY this new
arrangement the Baltimore and Ohio road
passed into the hands of capitalists friendly
to the Pennsylvania Railroad, and upon
terms which remove 1t as disturbing
factor in the trunk-lin situation, and
make it really part of railroad combina-
ton that covers more miles of territory than
any other system in the world. The Official
announcement of the deal, issued from the
office of Drexel, Morgan e. Co., the New
York bankers, is aS follows:
"a preliminary contract has been executed
to-day between the Baltimore and Ohio Rail
road Company and S. j. Morgan & Co., Bar
ing Brothers e. Co. and Brown, Shipley a.
Co., of London, and their allied houses Oh
this side. The contract provides for the ne
gotiation OF Shen. 900 B. g. o. consolidated
Five millions B. & o. preferred stock, for
the purpose of paying off the entire floating
debt of the company and placing it upon
sound financial basis.
1.-The conditions are as follows:
"First-The verification of statements, &C.,
as made.
'Second-That the management OF the
company shall I've placed in competent hands,
satisfactory to the syndicate.
"Third-That satisfactory contracts shall
be made between the Baltimore and Ohio
and the other roads for New York business,
which shall remove all antagonism between
them m ha c,16 ianta ir1S1, nant
working of the Baltimore and Ohio in entire
harmony with the other trunk lines; also
avoid construction or throat of construction
OF expensive parallel lines north and east of
Philadelphia.
1.-THE houses interested on this side are
Drexel, Morgan g. Co., Drexel g. Co., Brown
Bros. g. Co. and Kidder, Peabody & Co."
This announcement, the World says, means
the retirement of Robert Garrett from the
active management of the great property
created 10y the energy and ability of his
father. 1t means that the Baltimore and
Ohio has become crippled financially by it,
long and expensive fight for entrance into this
city and by its maintenance of an Improbable
telegraph system in opposition to the
Western Union. 1t means that combina-
tion of capitalists has agreed to come to the
financial assistance of the road and by the
negotiation of $l0,OO0,UO0 of securities to
place it on sound basis. ltmeans that the
Syndicate does this on conditions which
must appear very hard to Mr.. Garrett.
as they place the B. and o.
property in the hands of a syndicate
friendly to the Pennsylvania Railroad, and
compel the abandonment of the long cherished
plan of the elder Garrett, the building of an
independent line into New York paralleling
the Pennsylvania. 1t means finally that
handful of capitalists now really control a
railroad system that covers nearly half
continent in every direction, and with the
New York Central system absolutely controls
the trunk line situation.